How to look at a company with Negative Equity but positive cash flow
Hi all, I am looking at a PE owned company to see whether we should invest. The company basically issued huge amounts of preferred equity, so the acrrued interests are so high that the company has overall negative equity. i.e. even thought the cash flow is still positive, the accrued interest hits the bottomline on the P&L and thus reduces equity. How does one generally think about valuing the company from investor perspective? thx!
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